We are on or about day forty-three of Russia’s invasion of Ukraine, and it looks like Russian units have pulled out now from around Kyiv and Chernihiv, back into Russia or Belarus in order to resupply and reorganise, and the expectation is that they will move toward the Donbas region, which Russia says it wants to “liberate.” That has Ukrainian authorities encouraging people in the region to evacuate before they come under fire. On a related note, the mayor of Mariupol says that at least 5000 civilians have been killed in his city including 210 children, and that 90 percent of the city’s infrastructure has been destroyed, because that’s what Russia does.
Closer to home, it is the great pre-budget tradition of leaks from the PMO in order to set the stage for the main event. So far, we have leaks on:
- Defence spending—as much as $8 billion will apparently be allocated (though who knows if they will have the capability to actually spend it, as they can’t with their current allocation)
- The promised surtax on big banks and insurance companies who profited during the pandemic, which they hope will raise $1.2 billion per year for the next three years.
- They plan to allocate $10 billion to housing over five years to implement the various measures from their platform, including $4 billion to help municipalities update their zoning and permitting to hopefully unclog that particular bottleneck.
- There are hints coming that it may “overperform” in its fiscal anchors because of the roaring economy boosting revenues.
And of course, the usual wailing and rending of clothes by a subset of economists who think that enhancing the social safety net is expansionary fiscal policy that will force the Bank of Canada to fend for itself in tackling inflation.
https://twitter.com/kevinmilligan/status/1511835606132830211
Meanwhile, here are Chrystia Freeland’s budget shoes. This was the first time federally that the event had taken place in a women’s shoe store (as she had them delivered to her home last year because of the pandemic). And thankfully, she didn’t try something gimmicky.
Continuing the pre-budget tradition of selecting a new pair of shoes, I chose Canadian label L’Intervalle – I spoke with Vicky today, the co-founder, and told her how much I look forward to wearing her shoes for #Budget2022 tomorrow! pic.twitter.com/UrjRLJo7Xw
— Chrystia Freeland (@cafreeland) April 7, 2022